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China Wood Products Prices

01-15th November 2009


US Dollar Exchange Rates of  14th December 2009
China Yuan 6.8282
Report from China
 



New National Forest Inventory
According to the recently released Seventh National Forest
Inventory (2004-2008), China¡¯s forests cover an area of
195 million hectares, or 20.4% of the total land area.

The estimated growing stock is 13,721 million cubic
metres. Of the total forest area, natural forest accounts for
120 million ha, (growing stock 11,402 million cu.m); the
plantation area is 62 million hectares, (growing stock
196,100 million cu.m).

Compared with the sixth national inventory, the main
points of interest are:

• Doubling of the forest area and growing stock
The forest area increased by 20.54 million ha.
and the forest cover increased from 18.2% to
20.4%, while the forest growing stock
increased by 1,123 million cu.m, equal to an
average annual net increase of 225 million cu.m.

• Natural forest resource increased significantly
There has been a net increase of 3.93
million ha in the natural forest area.

• Plantation resources are increasing
There has been a net increase of 8.43
million ha in plantation area and the
growing stock increased by 447 million cu.m.

• Forest quality improved
The average growing stock per hectare has
increased by 1.15 cu.m, the annual increment
is up 0.3 cu.m/ha, the number of trees per
hectare increased by 57, the proportion of
mixed forest rose by 9% and overall the
structure of forest age distribution and tree
species mix has improved.

• Harvests from plantation increased
Harvests from plantations rose 12.3% and
accounted for 39.4% of the total harvest.

• Proportion of forest managed by individuals rose

These results have been interpreted as showing that
China¡¯s forest resources have entered a new and fast
developing stage, however, forest protection and
management is still problematic in many areas, says the
inventory report In general, the increase of forest resources
does not equate to the demands of Chinese society,
especially in relation to protection and conservation.

The latest national inventory began in 2004 and ended in
2008, five years, and more than 20,000 technical personnel
were involved.

Forest area to increase
To address climate change, Mr. Zhang Jianlong, Vice
Administrator of the SFA told correspondents recently that
China will increase its forest area by 40 million ha. by
2020. This will be achieved through implementation of the
¡°Forestry Action Plan to Cope with Climate Change¡±.

To fulfill the targets set the state will take the following
measures:

• further strengthen tree planting
Planting around villages and crop fields, as well
as along roads and canals will be undertaken.

• Improve forest management
The growing stock per hectare in China is well
below the world average. The unit growing
stock in 60million ha of plantations is only 49
cu.m/ha., this will be improved.

• Strengthen forest protection measures and take
strong action against illegal felling and the
unauthorized occupation of forest lands.

Expanding plantations
According to available statistics, China has established a
total of 6.55 million ha of fast growing and high yielding
plantations since 2002.

Up to now, a series of timber forest industrial belts have
been formed, such as southern industrial belt, central
eastern industrial belt, and northeastern and Inner
Mongolian industrial belt.

According to the national working conference forest
plantation full use of the achievements of collectively
owned forests and mobilization of forest farmers will be
beneficial.

Production needs to be oriented by market requirements
and efforts are required to improve the productive capacity
of forest lands.

Felling ban
According to information from the forestry department of
Heilongjiang Province, a plan for the conservation and
economic transition of Da Xinganling and Xiao
Xinganling Mountains, the largest state owned forest
district in China, has been submitted by Forestry
Department of Heilongjiang Province.

This plan will be phased over two years. Eventually
harvesting will be completely banned in this area and
enrichment planting will be carried out. Also rehabilitation
and conservation of wetlands will be implemented.

It is forecast that, by the year of 2020, the ecological
environment in this area will have been recovered and the
forest cover will reach over 70%.

 

Abbreviations

LM        Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS         Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR            French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF         Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot               Price has moved up or down

Source: ITTO'  Tropical Timber Market Report

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